1.5 & 1.6 IB Quiz Part 1

A firm’s growth can be measured by:

• Number of employees

• Revenue

• Profit

• All of the above

External (or Inorganic Growth) refers to a firm’s growth with the assistance of another firm.

• True

• False

A benefit of being a small business is:

• Discounts can be offered to customers due to bulk purchases made by the business

• Personalized customer service is typically more common

• Brand recognition

• More choices offered to customers

An example of Organic Growth is:

• Strategic Alliance

• Being acquired by another business

• Joint Venture

• Changing the price of your products

When businesses change their prices to increase sales, prices should always be increased.

• True

• False

When two or more firms do business in one specific area, remain separate, and a new business is not formed, this is known as:

• Strategic Alliance

• Joint Venture

• Acquisition

• Merger

When two or more firms do business in one specific area and form a new business for the new project, it is known as:

• Strategic Alliance

• Joint Venture

• Acquisition

• Merger

With a Franchise, the parent company that allows the purchaser to use their name is known as the Franchisor.

• True

• False

A host country is:

• A nation that expands within its nation

• A nation that is welcomed in a new country

• A nation that allows a MNC to set-up in its country

• A nation that expands to another continent

A benefit of being a larger business is:

• The owner has more autonomy

• Brand recognition

• Personalized customer service is typically given

• Government aid is typically given